On Feb. 6, Genesis announced that it has arrived at a global resolution that will “maximize value” for all Genesis clients and stakeholders.
The in principle agreement is with its parent company DCG and groups of creditors which, on aggregate, hold or represent more than $2 billion in asserted claims.
In early January, Genesis axed almost a third of its staff as it mulled a bankruptcy filing. On Jan. 20, the crypto lender proceeded with the Chapter 11 filing.
According to the announcement:
“Under the terms of the agreement, DCG would exchange its existing $1.1 billion note due in 2032 for convertible preferred stock to be issued by DCG as part of Genesis’s Chapter 11 plan.”
Genesis Moving Forward
DCG would also refinance its existing 2023 term loans. These would go through a new “junior secured term loan” in two tranches made payable to creditors with a total value of around $500 million.
DCG also intends to sell Genesis crypto trading businesses in addition to its lending arm, which is being restructured through bankruptcy.
Special Committee of Genesis’s board of directors member Paul Aronzon commented,
“Today’s agreement is a positive step forward and provides a clear path to a consensual resolution that maximizes value,”
The committee has been spearheading the company’s restructuring efforts .
Genesis lawyer Sean O’Neal said DCG will also contribute its equity interest in Genesis Global Trading (GGT) to Genesis Global Holdco, bringing all Genesis entities under the same holding company. He added:
“In the meantime, during these cases, we will actually be marketing and trying to sell not only the debtors’ assets, but also GGT’s because they form a nice package, and we believe that by packaging them together, we can maximize the recoveries to the estate.”
Genesis Global Capital reportedly owes at least $3.4 billion to no less than 100,000 creditors.
Gemini Agreement
Additionally, the crypto exchange Gemini also made an arrangement with Genesis and other creditors with “a plan that provides a path for Earn users to recover their assets,” as reported by co-founder Cameron Winklevoss.

1/ Today, @Gemini reached an agreement in principle with Genesis Global Capital, LLC (Genesis), @DCGco , and other creditors on a plan that provides a path for Earn users to recover their assets. This agreement was announced in Bankruptcy Court today.
— Cameron Winklevoss (@cameron) February 6, 2023

Furthermore, Gemini has agreed to contribute up to $100 million in additional funds to Earn users as part of the Plan.
Gemini loaned funds to Genesis and had as much as $900 million in customer deposits locked with the crypto lender.
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